Further devaluation of pound must be an option, says Soros
Published 12/04/2010 | 05:00
Billionaire investor George Soros said the next UK government after the May 6 election should decide whether to allow a further devaluation of the pound to rebalance the economy and assist the recovery.
Britain "has more room to use exchange rate adjustments as a way of adjusting the economy" than do nations that use the euro, he said yesterday. "It's a question for the next government to decide. It has a number of options, of which a currency depreciation is one."
The pound has dropped about 25pc on a trade-weighted basis since the start of 2007, making exporters' goods less expensive overseas.
Bank of England policymakers are counting on sterling's weakness to aid the recovery and rebalance the economy away from domestic spending at a time when the nation faces a record budget deficit.